THE CABLE
To sustain the steam in its efforts to ramp up revenue generation, the federal government has introduced some changes in taxes and excise duties following the amendment of the new 2023 finance act.
TheCable understands that ex-President Muhammadu Buhari signed the 2023 finance act into law on May 28, 2023 — a day before he handed over power to the new administration.
Although the act became effective on May 1, 2023, the government later amended some aspects of the document.
The sections that were adjusted include the capital gains tax act, the companies income tax act, and the industrial development (income tax relief) act.
Others are the personal income tax act, the tertiary education trust fund (establishment) act, the customs and excise tariff (consolidation) act, the value-added tax act, among others.
Prior to the new finance act, the federal government had published the fiscal policy measures (FPM) outlining the rates of taxes and excise duties for the current year.
The new FPMs, which consist of supplementary protection measures (SPM), revised excise duty rates, and green taxes; were approved by Buhari.
TheCable highlights some of the top amendments in the 2023 finance act.
10% TAX ON CRYPTO AND DIGITAL ASSETS
In the 2023 finance act, taxation of gains on the disposal of digital assets, including cryptocurrency was fixed at the rate of 10 percent, according to Taiwo Oyedele, a tax and fiscal policy expert at PricewaterCoopers (PwC).
TheCable’s examination of the document shows that the words “digital assets” were included in the amendment of section 3 (a) of the capital gains tax act. But no further details were provided vis-a-vis the exact tax percentage.
